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2021 (7) TMI 700 - AAR - GSTClassification of goods - rate of tax - Puripapad - Unfried papad - HSN code - whether the said Goods of the applicant can be termed as Papad? - HELD THAT:- The product ‘Papad’ is an eatable item, originated and mainly consumed in India. We find that for determination of the correct classification of any product, ingredients used in the manufacture of the said product are a decisive factor. In the case of MANILAL COMMODITIES PVT. LTD. VERSUS COLLECTOR OF CUSTOMS [1991 (2) TMI 276 - CEGAT, BOMBAY], the H’ble Tribunal was of the view that the classification on the basis of predominant contents is generally accepted as proper test. The entry No. 96 of Not. No. 02/2017- CT (rate) dated 28-6-17 has description of goods which reads as under: Papad by whatever name it is known, except when served for consumption. Therefore it can be deduced that all types of “Papad” as per trade/common parlance name are covered under the said entry. In the matters of classification of goods under taxation statutes, all the judicial forums, including the Apex Court, have stressed upon the importance of the identity of the goods in common parlance and there is a plethora of case laws which hold that for classification of goods under statutes for taxation of commercial supplies thereof, the primary test is their identity in the market, or in other words, their common parlance in the market. The goods are of different shapes and sizes but similar in respect of the ingredients, manufacturing process and use. Due to advancement of technology, papad does not limit to the same age old traditional round shaped papad but can be in any desired shape and size. In the old era, usually ‘papad’ was manufactured manually, therefore it was easy for them to manufacture the Round Shape papad. In the modern era, by the advent of technology, the product is being manufactured by machines and dies of different shape and size is used in the machine. Therefore, with the help of dies of various size and shapes, it is convenient to manufacture different shapes and sizes of papad. Further, at entry No. 96 of Notification No. 02/2017-CT (Rate) dated 28-6-17, the description goods is 'Papad, by whatever name it is known, except when served for consumption’. The subject Goods are classified at HSN 19059040.
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